Ichigo REIT April 2015 Fiscal PeriodpPresentation
Corporate
June 16, 2015

IIchigohi RealR l EstateE t t Investment
Itt Corporation
C
ti(8975)
Ichigo Real Estate Investment Advisors Co., Ltd.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

www.ichigo-reit.co.jp/english

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Creating peace of mind throughhhonestt andd committed
itt d management.
t© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

April 2015 Financial Results
 Operating Profit and Dividend Up
 10 C
Consecutiveti P
Periodsi d off Di
Dividend
id d G
Growthth – No.
N 1 vs. All JJ-REITs
REIT Consistent >95% Occupancy
 Organic Growth – New Tenants and Higher Rents

Accelerating Growth Ichigo REIT Growth Strategy
 Asset Acquisitions Funded via Accretive Public Offering (PO)y Assets with On-Going
g Value-Add Opportunityppy Prime Location Tokyo High-Quality Portfolio – 83% Tokyo Metro Area, 96% Occupancy
 Ichigo REIT’s Differentiated External Growth Strategy
 Organic Growth Driving Shareholder Value OrganicO
i G
Growthth Strategy
St t Financing Strategy
 Megabank-Centered Lender Base October 2015 Dividend Forecast
 On-Going Operating EPS Growth

Appendix: Loan Details / Leasing & Portfolio Data / About Ichigo REIT

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

5April 2015 Financial Results© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

6

Operating Profit and Dividend Up
April 2015 Dividend: 1,603 yen (+13 yen vs. Initial Forecast)(million yen)
October 2014

Operating Revenue

4,615

April 2015

Initial Forecast

5,020

4,973

Difference+47

Major Factors for Variation
Rental revenue: +16
Sales gain from sale of 15 residential assets +10 and from sale of
Ichigo Sendai Chuo Building +21
Higher rental expenses: -16
Higher other operating expenses: -41

Operating Profit

2,139

2,267

2,278

-10

Recurring Profit

1,410

1,005

1,265

-259

Net Income

1,409

704

1,264

-560

1,547 yen

1,603 yen

1,590 yen

+13 yenNo. of assets

70

65

－

－

－

No. of tenants

513

605

－

－

－

Leasable area

170,306 ㎡

184,919 ㎡

－

－

－

5.6%

5.7%

－

－

－

Dividend per ShareNOI yield

Higher non-operating expense: -249 (Borrowing related expenses-237, Interest expenses +7, Other -20)
Extraordinary loss: -300 (Impairment on sale of the Falcon Shinsaibashi
Building)
Used 1,107 mm yen of existing dividend reserve (Dividend reserve
now 13,160 million yen as of April 2015)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

7

10 Consecutive Periods of Dividend Growth – No. 1 vs. All J-REITs

737 yen(*)

April 2010899 yen(*)

October 2010979 yen
((*))

1,031
yen
((*))

April 2011

October 2011

1,219
yen

April 2012

1,387
yen

October 2012

1,494
yen

1,537
1
537
yen

1,541
yen

1,547
yen

1,603
yen
(A t l)(Actual)April 2013

October 2013

April 2014

October 2014

April 2015

* Adjusted to reflect stock split on November 1, 2011

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

8

Consistent >95% Occupancy
96.1% Occupancy as of April-End; 97.0% Occupancy in Central Tokyo
High-Quality Asset Acquisitions & Higher Rents at Existing Assets
Occupancy and Rent per Tsubo
(yen)
100%

22,000
98.1%

Average rent per tsubo((All Offices))

94.8%

Average rent per tsubo(Offices in Central Tokyo)

93.2%

Occupancy(All Offices)
Occupancy(Offices in Central Tokyo)

94.4%

94.7%
94.6%

97.0%

96 3%
96.3%
96.2%

96.1%

94.3%

90.5%
90%

18,00017,10080%

No. of Assets

95.1%

95.5%

14 00014,00017 20017,20016,90013,90016,50013,90013,80016,60016,20013,70015,90013,60013,50070%

All Offices((Offices in Central Tokyo)
y )14,00010,000April 2012

October 2012

April 2013

October 2013

April 2014

October 2014

April 201541((21))

41((22))

40((22))

41((23))

42((24))

41((23))

48((26))© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

9Organic Growth (1) New Tenants Increasing Occupancy
Driving 100% Occupancy in Newly Acquired Assets
Ebisu Green Glass

Ichigo Sagamihara Building

Occupancy rate

Occupancy Rate

At acquisition 90.6% → April 30, 2015 100% (+9.4%)

At acquisition 90.5% → April 30, 2015 100% (+9.5%)- Renovated entrance, elevator hall, and signage- Held a viewing
g event and following
g up
p with p
potential tenants
to achieve rapid lease-up- Relationship building with existing tenants- Identified the needs of two existingg tenants for larger
g spacepand found a prospective tenant interested in moving into thebuilding- Optimized timing to move tenants within and into the building

Ebisu Green Glass
Prime location office building
4-minute walk from Ebisu Stationon the JR Line

Lease-Up of Ichigo Sagamihara Building(Before)7F(After)OccupiedCompany B

6F

Occupied

6F

7F(New Company)

OccupiedCompany C

Occupied

5F

VacantOccupied

5F

Company A

Occupied

4F

OccupiedCompany A

4F

OccupiedCompany B

3F

Occupied

3F

Occupied2F

Occupied2F

Occupied

1F

Occupied

1F

Occupied© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

10Organic Growth (2) New Tenants at Higher Rents
59% of New Tenants Coming In at Higher Rents vs. Just 14% Six Months Ago
New Rent Level vs. Previous Rent Level

100%

Upward

14.5%

11.4%

11 3%
11.3%

80%

14.4%

Flat

31.3%

Downward

10.4%

29.7%

58.8%

60%

18.6%

40%

77.3%
55.8%

75.3%

9.1%

50.1%
50
%

20%
32.1%

0%
April 2013

October 2013

April 2014

October 2014

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

April 201511

Organic Growth (3) Existing Tenants at Higher Rents
Renewals Have Turned Upward: Higher Rents Exceed Lower Rents
L
Lease
R
Renewalsl att E
Existing
i ti R
Rentt or Hi
Higherh

T d iin L
Trend
Lease R
Renewalsl

UpwardFlat(By Leased Area)

Downward

100.0%(By Leased Area)

(m 2)

0.6%
0
6%

1 1%
1.1%

8 7%
8.7%

5 000
5,000
4,539

80.0%

80.6%

81.3%
91.6%

Flat

3,844

4,000

60.0%

Upward

3,000

88.7%

2,541

85.5%

2,080

2,037

40.0%

2,000

20.0%

868

1,000

18.2%

18.7%
7.8%

11.3%

0 0%
0.0%
April 2013

October 2013

April 2014

October 2014

286

161

5.8%
April 2015

0
April 2013

October 2013

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

April 2014

October 2014

April 201512

Organic Growth (4) Raising Rents Nationally
Renewals at Higher Rents Occurring Both Within and Outside Tokyo
Location

Details

Rent Raise

Shibuya-ku

CentralTokyo

Negotiated with tenants based on a detailed
understanding of the growing demand and average rent in
Shibuya area

2 tenants (800m2)
703 thousand yen increase
per fiscal period

Chuo-ku

CentralTokyo

After acquisition, detailed to existing tenant the building's
high specification and superiority relative to other assets

1 tenant (297m2)
596 thousand yen increase
per fiscal period

Shinagawa-ku

CentralTokyo

Tenant agreed to increase based on rent gap vs. averagerent in the surrounding area

1 tenant (578m2)
2,367 thousand yen increase
per fiscal period

Nagoya City

Four
Major
CitiesIn responding to the tenant's need for larger space,concurrently negotiated a rent raise of currently leasedspace

1 tenant (244m2)
447 thousand yen increase
per fiscal period

Saga City

Other
Regional
CitiesCarried out value-add enhancements to improve tenant
functionality and comfort such as updating the air
conditioning and renovating the common area

2 tenants (152m2)
565 thousand yen increase
per fiscal period© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

13

Accelerating Growth© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

14

Ichigo REIT Growth Strategy
Revival Stage

Growth Stage

Stage I/II/III
2011/102013/10

Stage IV
2014/10

2015/47th period post merger

Stage V
2015/10

8th period post merger

Goal
G

Increase Size & Scale
Obtain Credit Rating

Plan

Enh
hance Pro
ofitabilityyAccrretive Groowth Cycle

Foundation for
f Growth■ Financing Strategyg・Obtain credit rating
・Strengthen financial base via PO・Increase potential for new
borrowing(collateral consolidation and noncollateralized borrowing)■ Internal Growth Strategy
・Improve lease terms of assets
with growth potential
・Promote Ichigo brand■ External Growth Strategy
・Acquire assets via new borrowing
・Build a mid-size office portfoliowith both stability and upside
potential
・Make full use of Ichigo’s
warehousing capability

2016/49th period post merger

2016/1010th period post merger

F th Increase
FurtherI
Dividend
Di id dand Solidify Market Position■ Financing Strategy
Seek bond issuance and diversify
・Seekborrowing・Improve credit rating■ Internal Growth Strategy
・Drive higher profitability via
economies of scale as portfolio
size increases
・Strengthen Ichigo brand

Drive
Further Growth■ External Growth Strategy
・Acquire assets via additionalborrowingg・Build a mid-size office portfoliowith both stability and upside
potential© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

15

Asset Acquisitions Funded via Accretive Public Offering (PO)
Acquired 12 Office Assets (11 in Tokyo)
 Average occupancy: 95.5%
 Total acquisition price: JPY 44.0 B
 11 assets acquired via Ichigo sponsor support
AccuisitionPrice(million yen)Appraisal Value(million yen)

NOI Yield

Occupancy

Shibuya-ku,
Shibuyaku, Tokyo

7,200
,

7,220
,

4.2%

100%

Central Tokyo

Shibuya-ku, Tokyo

3,650

3,720

4.3%

76.2%

OfficeCentral Tokyo

Shibuya-ku, Tokyo

3,960

4,010

4.7%

100%

Ichigo Sasazuka Building (O-62)

OfficeCentral Tokyo

Shibuya-ku, Tokyo

4,780

4,840

5.3%

100%

Ichigo Nihonbashi East Building (O-63)

OfficeCentral Tokyo

Chuo-ku, Tokyo

4,700

4,850

4.7%

84.7%

Shuwa Dai 2 Sakurabashi Building (O-64)

OfficeCentral Tokyo

Chuo-ku, Tokyo

2,500

2,600

5.0%

100%

Ichigo Shinkawa Building (O-65)

OfficeCentral Tokyo

Chuo-ku, Tokyo

2,360

2,480

5.0%

84.4%

I hi K
IchigoKudan
d B
Building
ildi (O(O-66)
66)

Offi
OfficeC t lT
CentralTokyok

Chi d k T
Chiyoda-ku,
Tokyo
k

3 190
3,190

3 200
3,200

4 9%
4.9%

100%

Ichigo Higashi Gotanda Building (O-67)

OfficeCentral Tokyo

Shinagawa-ku, Tokyo

3,660

3,680

5.0%

100%

Axior Mita Building (O-68)

OfficeCentral Tokyo

Minato-ku, Tokyo

1,800

1,840

4.6%

100%

I hi Hi
IchigoHigashihi Ik
Ikebukurob k
B
Building
ildi (O(O-69)
69)

Offi
OfficeT hi
Toshima-ku,
k T
Tokyo
k

4 570
4,570

4 710
4,710

5 0%
5.0%

92 5%
92.5%

Koriyama Big-i Building (Office Section) (O-70)

OfficeKoriyama City, Fukushima

1,660

1,710

6.6%

100%

44,03044,860

Average 4.8%

Average 95.5%

Asset
Type

Area

Ichigog Jingumaeg
Buildingg ((O-59))

OfficeCentral Tokyo

Ichigo Shibuya Dogenzaka Building (O-60)

OfficeIchigo Hiroo Building (O-61)

Asset

Total

Tokyo
Metropolitan
M
t
lit
Area
Other Regional
CitiesLocation© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

16

Prime Location Tokyo Assets with On-Going Value-Add Opportunity
N l Acquired
NewlyA
i d 11 T
Tokyo
k P
Prime
i
L
Locationti A
Assetst

Shinjukuj
WardShibuyaWard

ChiyodaWard Chuo Ward

MinatoWard

Shinagawa
Ward“Central Tokyo” refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

17

High-Quality Portfolio – 83% Tokyo Metro Area, 96% Occupancy
As of October 31, 2014

As of April 30, 2015

As of May 8, 2015

Total

70

65

76

Office41

48

60

Residence

18

－

－

Other

11

17

16

Total

114.0(100%)

123.3(100%)

163.9(100%)

Offi
Office75.1(66%)1(66%)

9 8( 8%)95.8(78%)

139 9(8 %)139.9(85%)

Residence

20.0(18%)

－

－

Other

18.8(16%)27.4(22%)24.0(15%)

Central Tojkyo

54%

49%

60%

Tokyo Metropolitan Area

21%

26%

22%

Four Major Regional Cities

17%

15%

9%

Other Regional Cities

8%

9%

8%

114.1

126.3

168.4

170,306.22㎡

184,919.13㎡

223,822.60㎡

Occupancy

95.7%

96.0%

96.2%

NOI Yield

5.6%

5.6%

5.5%

LTV ((Based on Book Value))

45.2%
%

43.7%
%

43.8%
%

19.2

20.8

21.5

# of Assets

Acquisition Price(billion yen)

Location

Appraisal Value (billion yen)
Leasable Area

Average Age (years)

1: NOI as of April 30, 2015 and May 8, 2015 are provisionally calculated excluding assets sold during the fiscal period; NOI of assets acquired in April 2015 andOctober 2015 are determined from the annual NOI calculated via DCF method based on the appraisal value at acquisition.
2: Appraisal Value, Leasable Area, Occupancy, and Average Age as of May 8, 2015 are provisionally calculated based on portfolio assets as of April 30, 2015,
taking the 12 asset acquisitions and sale of the Falcon Shinsaibashi Building into accountaccount.
3: LTV as of May 8, 2015 is provisionally calculated based on interest bearing liabilities as of April 30, 2015, taking the sale of the Falcon Shinsaibashi Building andthe 12 assets acquired on May 8, 2015 into account.
4: “Other” as of April 30, 2015 includes 3 serviced apartments© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

18

Ichigo REIT’s Differentiated External Growth Strategy
Focused Portfolio that Leverages Ichigo’s Strengths as an Operator
 Focused on mid-size offices, an asset class that offers both stability of
returns and upside potential as an economically sensitive asset
asset.
 Source prime location mid-size assets with room for value-add
 Acquire at cap rates that support high dividend Geographically diversified
 Improve profitability of acquired assets through organic growth strategy tomaximize shareholder value

Taking Full Advantage of Ichigo as Sponsor
 Asset Warehousing— Buy and hold assets within Ichigo bridge funds when they meet Ichigo REIT
criteria to support optimal REIT portfolio construction

 Acquisition Credit Support— Acquisition support for Ichigo REIT transactions using Ichigo’s credit strength Sourcing— Use the full network of Ichigo to source acquisition and sale opportunities at thebest possible price for Ichigo REIT shareholders© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

19

Organic Growth Driving Shareholder Value
Significant On-Going Organic Growth Potential
 Increased demand for mid-size office buildings due to improving economic conditions
 Increasing occupancy rates in newly acquired buildings making use of Ichigo’s
Ichigo s leasing
capabilities Contract renewal at higher rents via systematic capex to enhance buildings’
competitiveness and value-add enhancements to improve tenant functionality andcomfortDrive further EPS growth via high occupancy and higher rental income
C t t Renewals
ContractRl iin O
Octobert b 2015 P
Periodi d4,143 m2
(13 tenants)

29,461 m2(95 tenants)• Focus on tenants in areas withgrowing demand : Shibuya
Shibuya, Ebisu
Ebisu,
Gotanda, Kanda• Market the superior functionality of
Ichigo assets in regional areas and proactively approach good tenants■ Rents at -10% or less of market rent
■ Rents around or above market rent
(Note) The tenants in scope are office tenants (excluding retail, etc.) including assets acquired during the existing October 2015 fiscal period.
Market rent refers to the market contract rent published by CBRE Co., Ltd. as of March 2015.
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

20

Organic Growth Strategy (1) Value-Add Driving Occupancy
Strategic Value-Add Renovation Targeted at Needs of Major Tenants
Ichigo Nanpeidai Building
Targeting IT and advertising industry tenants resulted in acquisition of new
tenants at higher rents and sustaining high occupancy rate.
- Conducted a phased renovation to renew the building’s interior and equipmentwith the specific aim of attracting IT and advertising industry tenants- Installed high-grade, high-flexibility air conditioning for types of tenants that
tend to have flexible work patterns systems
Occupancy and New Contract Rents
No. of contracts

140

100.0

100.0

(%)

100.0

100.0

90 0
90.0

91.9

100.0

122

120

90.0
87.2

116
113
103

100

80 0
80.0
New contract rents (lef t axis)

100

Fiscal Period

Occupancy (right axis)
80

70.0
Apr 2012(1)

Oct 2012(-)

Apr 2013(2)

Oct 2013(1)

Apr 2014(-)

Oct 2014(1)

Details of Ichigo Nanpeidai Building Renovation

Apr 2015(1)

Notes: Excludes basement floor units. The number in the parentheses after the fiscal period is the numberof new contracts during that period. The vertical axis shows the index with the base in April 2012 period set as 100.

Renovation Details(million yen)
Cost

October 2011

Renewal of 1st floor entrance, new signage

3

April 2012

New air conditioning (Floors 6-10)

17

October 2012

Renovation of common areas (Floors B1, 4)

7April 2013

Renovation of common areas (Floors 2,5,6 )10April 2013

New air conditioning (Floors B1, 2-5)

18

October 2013

Renovation of common areas (Floors 3,8)

6

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

21

Organic Growth Strategy (2) Ichigo Layout OfficeStrengthening Building Competitiveness with Ichigo Layout Office
Ichigo Uchikanda Building
Vi IchigoVia
I hi L
Layoutt Offi
Office, offering
ff i pre-fitted
fitt d and
d ffurnishedi h d office
ffi space,acquired a new tenant contract within one-month. Improved two otherfloors as Ichigo Layout Offices, leading to rapid lease-up.

(Before)Ichigo Layout Office is a service
that provides a fully fitted office toaccelerate tenant move-in andreduce tenant costs.

- Constructed a highhigh-design
design content reception and meeting room
room, and
optimized a uniquely-shaped working area.
- Introduced an open-office work layout and installed a custom-made desk
in a previously unused space.
Office(130.98㎡)

Occupancy
(%)

100.0

100

(After)
90.6

90.6

90.5
Ichigo Layout Office
Renovation

90

80
70.1

70.1

70

60
Mar
2013

Apr
2013

May
2013

Jun
2013

Jul
2013

Aug
2013

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

22

Organic Growth Strategy (3) Value-Add & Lease-Up
Ichigo Kanda Ogawamachi Building – October 2015 Plan:

Ichigo Shibakoen Building – October 2015 Plan:

Tenant acquisition: Office (470 m2), Retail (192 m2)

Tenant acquisitions at +20% to +30% above market rent1

Improve occupancy from 60.2%
60 2% (April 2015) to 89.6%
89 6%- Contract termination in office space (700 m2) and retailspace (508 m2) in October 2014 period- Value-add renovations have been made to the entrance,elevator hall, etc.
- Tenant acquisition for 314 m2 of retail space with nodowntime (November 2014)- Further renovations planned to increase functionality andthus speed lease-up and drive higher rents. Lighting tob replacedbeld withith LED
LEDs andd restroomstrenovatedt d- Value-add renovations to be made to vacant space after
contract termination (218 m2)- Carry out renovations to meet the tastes of IT andcommunication industry tenants, a dominant industry in the area
g for tenant acquisitionsq
at above market rents,, reflectingg- Aimingsuperior functionality
1 Market contract rent (including common fee) based on research by

CBRE Co., Ltd. as of March 2015 is 3,300-3,600 yen per square
meter (11,000-12,000 per tsubo).

Ichigo Kanda Ogawamachi BuildingAp
prime location office buildinggnear two stations: 2-minute walkfrom the Ogawamachi Station on
the Toei Subway Shinjuku Line and3-minute walk from the
Ochanomizu Station on the Tokyo
Metro Chiyoda Line(Acquired in December 2013)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Ichigo Shibakoen Building
A conveniently located and highly
visible office building within
3-minute walking distance fromthe Akabanebashi Station on theToei
oe Oedo Linee23

Financing Strategy
Increasing Financial Strength via Refinancing and New Loans from
Megabank-Centered Lender Base Working towards non-collateralization and credit rating to increase acquisition
capacity and drive higher earnings
C
Currentt

M
Megabank-Centeredb kC t dL
Lenderd B
BaseAcquire Credit Rating

Going Forward

Non-Collateralization
Lowered Debt Cost

Strengthened
Funding Capability© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

24Megabank-Centered Lender Base
As of October 31, 2014

As of May 8, 2015

Shinseti Trust *2
Bank of Fukuoka
2%
ORIX Bank
2%
3%

Metlife
Alico
Kagawa 3%
Bank3%

Shinsei
Trust *1
5%Bank of Fukuoka
3%

Kagawa Bank
2%

Tokyo Star
2%

ORIX
B k
Bank
3%

SMBC
23%

BTMU
10%

SMBC
24%

Tokyo Star Bank
5%

Prudential LPS
6%

Aozora Bank
13%

Resona Bank
11%

Resona Bank
10%

MizuhoTrust
Mizuho7%
Shinsei Bank
Bank
12%
5%

Mizuho Bank
15%

Aozora Bank
12%
Shinsei Bank
14%

MizuhoTrust
3%

1: Source of funds is an Investment LPS managed by AXA Real Estate Investment Managers Japan KK
2: Source of funds is Ichigo© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

25

October 2015 Earnings Forecast
Dividend Forecast: 1,670 yen (+67 yen vs. April 2015)
April 2015
Actual (A)October 2015
Forecast (B)(B) - (A)(million yen)

Major Factors for Variation

Operating Revenue

5,020

6,175

1,154

Rental revenue increase due to asset acquisitions +1,600;
Decrease due to asset sales -259, Decrease in rental revenue on existing assets -39(Other income -11) Decrease in sales gain -147

Operating Expenses

2,752

3,332

579

Rental expense increase due to asset acquisitions -630, Decrease due to assets sold+175, Rental expense increase on existing assets -27, (Utilities -23)
Increase in SG&A -96 (Management fee, other operating expenses)

Operating Profit

2,267

2,843

575

2

2

0

1 264
1,264

1 016
1,016

-248
248

1,005

1,828

823

704

1,828

1,123

Dividend Reserve Reversal

1,107

543

-

Total Dividend

1,812

2,371

-

1 603 yen
1,603

1 670 yen
1,670-

Non-Operating Income
Non-Operating
Non
Operating Expenses

Recurring Profit
Net Income

Dividend per Share

Increase in interest expense due to new loans -108
Decrease in financing-related expense due to repayment of existing loans +343

October 2015 Fiscal Period: PO/Loan-related 341, Asset sale-related 31, Reversal ofsales gain-related 170© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

26

On-Going Operating EPS Growth
October 2014 (Actual)

April 2015 (Actual)

October 2015 (Forecast)
Capital g
gains, etc.

144 yenCapital gains, etc.

96 yenCapital gains, etc.

61 yenOne-off financingrelated cost effectOne-off financingrelated cost effect236 yen

One-off financingrelated cost effect

113 yen

618 yen

1,486
1,373
yen

yen

EPS

Operating EPS

1,547
yen

1,507

1,603
yen

yen

1,526

1,670
yen

yen

1,290
yen

889
yen

Dividend Per ShareEPS

Operating EPS

Dividend Per ShareEPS

Operating EPS

Dividend Per Share(Note 1) Operating EPS is earnings per share excluding the effects of one-off financing-related costs (refinancing up-front fees, etc.)(Note 2) To allow for term-on-term
term on term comparison, April 2015 Actual is based on EPS excluding the effect of extraordinary loss on asset sale.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

27

Appendix: Loan Details and Leasing & Portfolio Data

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

28

Loan Details (1) – as of May 8, 2015
Borrowing

LenderBalance(million yen)

Borrowing Rate

Drawdown Date

Maturity Date

SMBC
Syndicate Loan I (Term Loan 3)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Mizuho
Trust & Banking Co., Ltd.; Resona Bank, Limited; Aozora Bank, Ltd.;The Tokyo Star Bank, Limited ; ORIX Bank Corporation

4,064

1.17182%(Floating)January 31, 2013

October 31, 2015

Kagawa Bank Loan

The Kagawa Bank, Ltd.

1,344

1.37091%(Floating)

November 30, 2010

November 30, 2015

SMBC & Mizuho Trust
Syndicate Loan I (Term Loan 2)

Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd.; Aozora Bank, Ltd.; Shinsei Bank, Limited; Resona Bank,
Limited1,200

1.91575%(Fixed)May 9, 2012

April 30, 2017

SMBC
Syndicate Loan I (Term Loan 4)

Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd.; Resona Bank, Limited; The Tokyo Star Bank, Limited

4,064

1.64777%(Fixed)January 31, 2013

October 31, 2017

SMBC
Syndicate Loan II (Term Loan 1)

Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited;
Resona Bank, Limited; Aozora Bank, Ltd.

3,633

1.79372%(Fixed)June 3, 2013

May 31, 2018

SMBC
Syndicate Loan II (Term Loan 2)
Resona Bank Syndicate Loan

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Shinsei
Bank, Limited; Aozora Bank, Ltd.
Resona Bank, Limited; The Bank of Fukuoka, Ltd.

3,937

1.46856%(Floating)*

December 10, 2013

November 30, 2018

2,000

1.07182%(Floating)

April 30, 2014

April 30, 2019

SMBC
Syndicate Loan II (Term Loan 3)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; Resona Bank, Limited; The
Kagawa Bank, Ltd.; ORIX Bank Corporation

6,435

1.07000%(Floating)*

August 1, 2014

July 31, 2019

SMBC
Syndicate Loan II (Term Loan 4)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited

5,448

1.26750%(Floating)*

December 10, 2014

December 10, 2020

SMBC
Syndicate Loan II (Term Loan 5)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited; The Kagawa Bank, Ltd.; ORIX
Bank Corporation

1,486

0.83000%(Floating)

December 15, 2014

June 15, 2018

SMBC
Syndicate Loan II (Term Loan 6)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited

5,448

1.03369%(Floating)*

December 15, 2014

December 16, 2019

SMBC
Syndicate Loan II (Term Loan 7)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited; ORIX Bank Corporation

1,486

0.83000%(Floating)January 9, 2015

June 15, 2018

Aozora Bank Syndicate Loan

Aozora Bank, Ltd.; Shinsei Bank, Limited; ORIX Bank Corporation

4,525

1.14200%(Floating)*

February 27, 2015

August 31, 2020

SMBC & Mizuho Trust
Syndicate Loan I (Term Loan 5)

Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co
Co.,Ltd.; Aozora Bank, Ltd.; Shinsei Bank, Limited; Resona Bank,
Limited

4,985

0.88000%(Floating)

April 30, 2015

April 30, 2018

SMBC
Syndicate Loan III (Term Loan 1-A)

Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited;
Mizuho Bank, Ltd.; The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000

1.14800%(Floating)*

April 30, 2015

April 30, 2019

SMBC
Syndicate Loan III (Term Loan 1-B)

Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited;
Mizuho Bank, Ltd.; The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,100

1.18500%(Floating)*

April 30, 2015

May 31, 2020

SMBC
Syndicate Loan III (Term Loan 2-A)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; The Bankof TokyoTokyo-Mitsubishi
Mitsubishi UFJ
UFJ, Ltd
Ltd.;; Resona Bank
Bank, Limited; Shinsei Bank
Bank,
Limited; Aozora Bank, Ltd.; ORIX Bank Corporation; The Bank ofFukuoka, Ltd.

4,000

0.82128%(Floating)May 7, 2015

November 7, 2017

SMBC
Syndicate Loan III (Term Loan 2-B)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; The Bankof Tokyo-Mitsubishi UFJ, Ltd.; Resona Bank, Limited; Shinsei Bank,
Limited; Aozora Bank, Ltd.; ORIX Bank Corporation; The Bank ofFukuoka, Ltd.

9,250

1.27500%(Floating)*

May 7, 2015

May 7, 2021

SMBC
Syndicate Loan III (Term Loan 2-C)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; The Bankof Tokyo-Mitsubishi UFJ, Ltd.; Resona Bank, Limited; Shinsei Bank,
Limited; Aozora Bank, Ltd.; ORIX Bank Corporation; The Bank ofFukuoka, Ltd.

9 250
9,250

1 34750%
1.34750%(Floating)*(Floating)May 7
7, 2015

November 7
7, 202180,661

Average 1.22%

Total* Interest rate has been fixed with an interest rate swap

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

29

Loan Details (2) – as of May 8, 2015
■ Distribution of Repayment Dates(million yen)
20,00015,0009,574

10,000

8,938
6,527

5,000

9,139

8,359
,

5,867

9,129

6,370
5,373

3,907

4,047
1,330

1,152

0
April 2015 Oct 2015 April 2016 Oct 2016 April 2017 Oct 2017 April 2018 Oct 2018 April 2019 Oct 2019 April 2020 Oct 2020 April 2021 Oct 2021 April 2022

■ Fixed-to-Floating Rate Ratio

Fixed: 76.0%

Floating:
24 0%
24.0%

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Fixed Rate Increase vsOctober 2014
+ 3.1%
30

Reference: April 30, 2015 Loan Details (1)Borrowing

LenderBalance(million yen)

Borrowing Rate

Drawdown Date

Maturity Date

SMBC
Syndicate Loan I (Term Loan 3)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Mizuho
Trust & Banking Co., Ltd.; Resona Bank, Limited; Aozora Bank, Ltd.;The Tokyo Star Bank, Limited ; ORIX Bank Corporation

4,467

1.17182%(Floating)January 31, 2013

October 31, 2015

Kagawa Bank Loan

The Kagawa Bank, Ltd.

1,344

1.37091%(Floating)

November 30, 2010

November 30, 2015

SMBC & Mizuho Trust
Syndicate Loan I (Term Loan 2)

Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd.; Aozora Bank, Ltd.; Shinsei Bank, Limited; Resona Bank,
Limited

1,814

1.91575%(Fixed)May 9, 2012

April 30, 2017

SMBC
Syndicate Loan I (Term Loan 4)

Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd.; Resona Bank, Limited; The Tokyo Star Bank, Limited

4,467

1.64777%(Fixed)January 31, 2013

October 31, 2017

SMBC
Syndicate Loan II (Term Loan 1)

Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited;
Resona Bank, Limited; Aozora Bank, Ltd.

3,633

1.79372%(Fixed)June 3, 2013

May 31, 2018

SMBC
Syndicate Loan II (Term Loan 2)
Resona Bank Syndicate Loan

SumitomoS
it
Mitsui
Mit i B
Banking
ki C
Corporation;tiMiMizuho
h B
Bank,
k Ltd
Ltd.; Shi
Shinseii
Bank, Limited; Aozora Bank, Ltd.
Resona Bank, Limited; The Bank of Fukuoka, Ltd.

3,937

1.46856%(Floating)*

December 10, 2013

November 30, 2018

2,000

1.07182%(Floating)

April 30, 2014

April 30, 2019

SMBC
Syndicate Loan II (Term Loan 3)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; Resona Bank, Limited; The
Kagawa Bank, Ltd.; ORIX Bank Corporation

6,435

1.07000%(Floating)*

August 1, 2014

July 31, 2019

SMBC
Syndicate Loan II (Term Loan 4)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited

5,448

1.26750%(Floating)*

December 10, 2014

December 10, 2020

SMBC
Syndicate Loan II (Term Loan 5)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited; The Kagawa Bank, Ltd.; ORIX
Bank Corporation

1,486

0.83000%(Floating)

December 15, 2014

June 15, 2018

SMBC
Syndicate Loan II (Term Loan 6)

Sumitomo Mitsui Banking Corporation; Mizuho Bank
Bank, Ltd
Ltd.;; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited

5,448

1.03369%(Floating)*

December 15, 2014

December 16, 2019

SMBC
Syndicate Loan II (Term Loan 7)

Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Aozora
Bank, Ltd.; Shinsei Bank, Limited; The Bank of Tokyo-Mitsubishi
UFJ, Ltd.; Resona Bank, Limited; ORIX Bank Corporation

1,486

0.83000%(Floating)January 9, 2015

June 15, 2018yLoan
Aozora Bank Syndicate

Aozora Bank,, Ltd.;; Shinsei Bank,, Limited;; ORIX Bank Corporation
p

4,525

1.14200%((Floating)*g)

Februaryy 27,, 2015

Augustg31,, 2020

SMBC & Mizuho Trust
Syndicate Loan I (Term Loan 5)

Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd.; Aozora Bank, Ltd.; Shinsei Bank, Limited; Resona Bank,
Limited

4,985

0.88000%(Floating)

April 30, 2015

April 30, 2018

SMBC
Syndicate Loan III (Term Loan 1-A)

Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited;
Mizuho Bank, Ltd.; The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,000

1.14800%(Floating)*

April 30, 2015

November 30, 2019

SMBC
Syndicate Loan III (Term Loan 1-B)

g Corporation;p; Shinsei Bank,, Limited;;
Sumitomo Mitsui Banking
Mizuho Bank, Ltd.; The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5 100
5,100

1 18500%
1.18500%(Floating)*

April 30
30, 2015

May 31
31, 2020

59,580

Average 1.23%

Total* Interest rate has been fixed with an interest rate swap

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

31

Reference: April 30, 2015 Loan Details (2)■ Distribution of Repayment Dates(million yen)
20,00015,0009,574

10,000

8,359
6,527
4,450

5,000

4,310

4,958

Oct 2017

April 2018

5,867

6,370
5,373

1,765

1,330
0
April 2015

Oct 2015

April 2016

Oct 2016

April 2017

Oct 2018

April 2019Oct 2019

April 2020

Oct 2020

April 2021

■ Fixed-to-Floating Rate Ratio

Fixed: 73.5%

Floating:
26 5%
26.5%

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Fixed Rate Increase vsOctober 2014
+ 0.6%
32

Unrealized Portfolio Gains: Appraisal Value > Book Value
Unrealized Gains of JPY 4.6B (+ JPY 2.8B vs. October 2014)(million yen)
150 000
150,000

4 0%
4.0%
Book Value

Appraisal
Appraisal Value

3.79%

Portfolio %Unrealized Gain / Loss

140,000

2.0%

1.55%
0.01%

130,000

126,359-1.57%

120,000-2.95%

121,741-2.0%-2.85%-3.88%

111,050

110,000

0.0%

114,182
113,022 113,034 112,433
109,305-4.0%

104 164
104,164

104,143
100,101
100,000

103,310
101,087
100,369-6.0%

90,000-8.0%

80,000-10.0%
Apr-12Apr
12

Oct-12Oct
12

Apr-13Apr
13

Oct-13Oct
13

Apr-14Apr
14

Oct-14Oct
14

Apr-15Apr
15

67 assets

67 assets

66 assets

68 assets

71 assets

70 assets

65 assets© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

33

Occupancy & Leasing Activity
Change in Leased Area as a Result of New Contracts andContract Terminations

Occupancy (as of April 2015)

Asset Type
Office

No.

Area

27

5,911 ㎡

Rent (for entire
period)Change from
Previous Rent

-142 mm yen－(㎡)

10,000100.0%
Terminations

Contract
Terminations

Upward

Other

－

－

－

－

Total

27

5,911 ㎡

-142 mm yen－

Office173,002 ㎡

+83 mm yen+11.5 %

Other

－

－

－

－

Total

17

3,002 ㎡

+83 mm yen+11.5 %

8,000

Occupancy

7,914
6 171
6,171

6,000
95.0%

4,000

93.9%

New Contracts

3,852

98.0%
95.6%

5,084
94.7%

3,932

95.4%

4,592

96 1%
96.1%

96.0%

5,678
94.0%

2 000
2,000

92 0%
92.0%
91.5%

Flat
New
Contracts

Office3466 ㎡+17 mm yen

－

Other

－

－

－

－

Total

3

466 ㎡

+17 mm yen－

0

April 2012

October 2012

Office10

1,638 ㎡

+33 mm yen-12.1%

Other

2

570 ㎡

+16 mm yen-18.9%

October 2013

April 2014

October 2014

April 2015

-2,000

90.0%

88.0%

-3,270-4,000-4,439-4,942
Downward

April 2013

-4,583-6,000-6,275,-8,00086.0%-5,911

84.0%

82.0%

-8,315Total

122,209 ㎡

+49 mm yen-14.5%-10,000© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

80.0%

34

Incentives

Free Rent Incentives

Rental Income Loss due to Free Rent

# of months((million yyen))
5,000

6.0

Loss from Free Rent

Average of Metropolitan Area

100.0%
99.3%

99.0%

Free Rent Ratio

Average of Regional Cities

5.0

Actual Rent Income

99.0%

98.5%

98.5%
98.0%

5.0

4,500
,

96.3%

4.0
4.0

3.9
3.9

3.1

3.1

98.0%

41

4,000

3.0

3.6

3.0

40

2.5

59

142

3.1

2.7

96.0%

27

73

55

3,500

94.0%
4,159
3 984
3,984

3,741

2.0

2.0

2.0

1.6

3,785

3,912

3,614

3,579

April 2012

October 2012

April 2013

October 2013

April 2014

October 2014

April 201549 assets

49 assets

48 assets

50 assets

53 assets

52 assets

62 assets

3,000

92.0%

1.0
2,500

0.0
April 2012

October 2012

April 2013

October 2013

Total Average:
Tokyo Metropolitan Area Average:
Other Regional Cities Average:

April 2014

October 2014

90.0%

April 2015

1 9 months
1.9
1.6 months
3.1 months© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

35

Total Leased Area
+ 14.636 m2 vs. October 2014
Asset Acquisitions

Lease Terminations-5,911m2+ 40,820 m2

Asset Sale

- 25,950 m2

New Leases/
Floor space
expansion+ 5,677 m2

Leased Area
162,963m2

October 2014

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Leased Area
177,599 m2

April 201536

Total Leased Area by Asset Class
(m2)
Lease
Terminations

Office110,943-5,911-2,156

5,107

28,936-

136,919-803

Residence

27,121--23,787---3,333

-

-

Other

24,898--6570

11,884

3,333

40,679564

Total

162,963-5,911-25,950

5,677

40,820-177,599-239

Asset Sale

New
Contracts

Change in
Asset Type2

End of Oct 2015

Asset
Acquisitions

End of April 2015

Change1 The
Th "R"Residence“
id“ assett classlno llonger exists
i t afterft th
the strategict t i residential
id ti l assett didisposition
iti iin D
Decemberb 20142014.
2 3 serviced apartments are included in "Other" from the April 2015 fiscal period.
3 Change relative to existing assets (i.e., excluding acquisitions and sales during the period)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

37

Lease Renewals at Higher Rent > Renewals at Lower Rent(# of tenants / million yen)
No.

Leased Areas

Rent(Entire Period)

Change from
Previous Rent

Office72,079 m2

+4 million yen

+8.5%

Other

－

－

－

－

Total

7

2,079 m2

+4 million yen+8.5%

Office3

867 m2-2 million yen

-7.4%

Other

3

531 m2-1 million yen-12.6%

Total

6

1,399 m2

-4 million yen-8.7%

Office80

17,991 m2

－

－

Other

13

2 512 m2
2,512

－

－

Total

93

20,504 m2

Asset Type

UpwardDownward

Flat

－

－

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

RenewedRdleases106/670

Other
377/2,293

Downward
Upward 6/45
7/59

Flat
93/56538

Increase in Net Monthly Rent vs. October 2014 Period
Asset Acquisitions

Lease
ease Terminationse
at o sDownsize
Renewals at Lower Rent
New Tenants
Renewal at Higher Rent

-25 mm yen+147 mm yen

Asset Sale

-89 mm yyen

+26 mm yen

Change due to tenant movements

Change due to asset
acquisition/sale+1 mm yen

+58 mm yen

Total
Monthly Rent

Total
Monthly Rent

657 mm yen

716 mm yen
Change during the period+59 mm yen(+8.9%)End of October 2014
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

End of April 2015
39

Change in Monthly Rent by Asset Type(million yen)
SAs:
Change in
Asset TypeEnd of April
2015

Changes

Changes from
Existing
Assets

-6

-

563

+112

-1

0

-83
83

-15
15

-

-98
98

-

-0
0

28

0

15

153

-53
53

+2

-1
1

147

-89
89

-

716

+59

+1

End of Oct
2014

Lease
Terminations

New
Contracts

UpwardDownward

Asset
Acquisitions

Office

451

-24

22

1

-0

119

R id
Residence

98

0

0

0

0

Other

108

0

3

0

Total

657

-24
24

25

1

Asset
Sales

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

40

Office Rent Gap
25.00%
Central Tokyo
Tokyo Metropolitan Area
Four Major Cities
Other Regional Cities
All

20.12%
20.00%

19.02%

17.47%
15.00%

19.48%

19.21%
15.69%

15.45%
14.58%

13.63%

10.57%

14.54%

13.66%
14.54%

12 01%
12.01%
10.95%

10.00%

8.91%
7 40%
7.40%
6.74%

5.00%

14.03%

12.15%

9.78%

8.90%

15.09%

7.12%

8.31%

8.84%

9.10%

8.19%

8.33%
8
33%
8.31%
7.69%

8 42%
8.42%

6.09%

6.83%

6.44%

0.00%
April
p 2012October 2012April
p 2013October 2013

April
p 2014

October 2014April
p 2015* Rent gap is premium in % of current rent vs. market rent (market rent from CBRE Co., Ltd.)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

41

Tenant Mix
As of April 30, 2015

Tenant Profiles
by Sector* Based on # of Tenants

Other
Real Estate 6%
3%
Education
Welf are 3%
3%

Finance6%

Total
ota Number
u be oof Tenants:
e a ts 60
607**
Service *26%

Top 5 Tenants
13.2%
13
2% b
by A
Area
12.3% by Rental Income

Manufacturing
9%

Restaurant,
Hotel
12%

Highly Diversified

IT
16%** Excludes the three serviced apartments. End tenants at Falcon
Shinsaibashi are included.

Retail16%* “Service” includes advertising agencies, consulting firms, accounting firms,
law firms, HR firms, beauty salons, and domestic and foreign government
offices, etc.
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

42

Portfolio Details (1)As of April 30, 2015

Use

OfficeAddress

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA(m2)

Occupancy(%)

Apr 2015 Appraisal

No.

Property

Area

O-02

Ichigo Nishisando Building

Central Tokyo

Yoyogi, Shibuya-ku, Tokyo

3,254

3,443

4,564.63

100.0%

2,620

4.8%

O-03

Ichigo Mita Building

Central Tokyo

Shiba, Minato-ku, Tokyo

2,740

2,761

4,097.63

100.0%

2,882

4.8%

Value
(mm yen)

Cap rate(%)

O-04

Ichigo Nanpeidai Building

Central Tokyo

Nanpeidaicho, Shibuya-ku, Tokyo

1,920

1,943

1,925.24

100.0%

1,970

4.1%

O-05

Ichigo Hanzomon Building

Central Tokyo

Hayabusacho, Chiyoda-ku, Tokyo

1,550

1,541

2,080.37

92.5%

1,630

4.5%

O-06

Ichigo Hijirizaka Building

Central Tokyo

Mita, Minato-ku, Tokyo

1,200

1,223

1,947.90

100.0%

1,280

5.1%

O-07

Ichigo Shibuya Kamiyamacho Building

Central Tokyo

Kamiyamacho, Shibuya-ku, Tokyo

1,505

1,443

1,321.54

100.0%

1,693

4.4%

O-08

Ichigo Akasaka 5 Chome Building

Central Tokyo

Akasaka, Minato-ku, Tokyo

735

731

687.78100.0%

751

4.3%

O-09

Ichigo Shibakoen Building

Central Tokyo

Shiba, Minato-ku, Tokyo

1,100

1,114

1,602.29

100.0%

1,060

4.9%

O-10

Ichigo Ebisu-Nishi Building

Central Tokyo

Ebisu-nishi, Shibuya-ku, Tokyo

1,917

1,917

1,484.39

100.0%

1,986

4.5%

O-11

Ichigo Ginza 612 Building

Central Tokyo

Ginza, Chuo-ku, Tokyo

1,773

1,772

1,392.24

89.9%

1,896

4.5%

O-12

Ichigo Uchikanda Building

Central Tokyo

Uchikanda, Chiyoda-ku, Tokyo

1,140

1,140

1,378.82

100.0%

1,070

4.9%
4 8%
4.8%

O 14
O-14

Ichigo Yotsuya 4 Chome Building

Central Tokyo

Yotsuya Shinjuku
Yotsuya,
Shinjuku-ku,
ku Tokyo

550

535

780 64780.64

90 9%
90.9%

559

O-15

Ichigo Tameike Building

Central Tokyo

Akasaka, Minato-ku, Tokyo

580

555

494.14100.0%

588

4.4%

O-16

Ichigo Jimbocho Building

Central Tokyo

Kanda Jinbocho, Chiyoda-ku, Tokyo

1,820

1,824

1,891.01

100.0%

2,050

4.7%

1,150

1,183

2,387.34

100.0%

1,010

5.0%

763

740

1,288.31

100.0%

846

4.8%

O-17

Ichigo Hakozaki Building

Central Tokyo

Nihonbashi Kakigaracho, Chuo-ku, Tokyo

O-18

Ichigo Kudan 2 Chome Building

Central Tokyo

Kudan Minami, Chiyoda-ku, Tokyo

O-19

Ichigog Kudan 3 Chome BuildinggCentral TokyoyKudan Minami,, Chiyoda-ku,y, Tokyo
y

844

844

1,302.43,

100.0%

795

4.9%

O-20

Ichigo Gotanda Building

Central Tokyo

Higashi-Gotanda, Shinagawa-ku, Tokyo

5,060

4,961

5,346.76

100.0%

5,450

5.1%

O-21

Ichigo Shin-Yokohama Building

Tokyo Metro Area

Shinyokohama, Kohoku-ku, Yokohama City, Kanagawa

1,816

1,769

4,029.77

75.9%

1,735

5.5%

O-22

Ichigo Minami-Ikebukuro Building

Tokyo Metro Area

Minami-Ikebukuro, Toshima-ku, Tokyo

1,460

1,399

1,491.51

74.9%

1,490

4.6%

O-23

Ichigo Nakano North Building

Tokyo Metro Area

Arai, Nakano-ku, Tokyo

764

772

1,250.85

100.0%

830

5.4%

O-24

Ichigog Eitai BuildinggTokyo
y Metro Area

Eidai,, Koto-ku,, Tokyo
y

1,490
,

1,481
,

2,608.05,

100.0%

1,150
,

5.4%

O-25

Ichigo Yokosuka Building

Tokyo Metro Area

Wakamatsu-cho, Yokosuka City, Kanagawa

971

972

2,187.44

91.4%

936

5.9%

O-26

Ichigo Ikejiri Building

Tokyo Metro Area

Ohashi, Meguro-ku, Tokyo

2,030

2,002

2,385.69

100.0%

2,010

5.0%

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

43

Portfolio Details (2)As of April 30, 2015
Use

OfficeArea

AcquisitionPrice(mm yen)Address

Book Value(mm yen)

NRA
(m 2)

Occupancy(%)

Apr 2015 Appraisal
Cap rate

No.

Property

O-27

Route Ikebukuro Building

Tokyo Metro Area

Ikebukuro, Toshima-ku, Tokyo

639

627

1,261.91

100.0%

673

5.0%

O-28

Ichigo Nishi-Gotanda Building

Central Tokyo

Nishigotanda, Shinagawa-ku, Tokyo

765

753

1,311.21

100.0%

804

5.1%

O-29

Ichigo Kichijoji Building

Tokyo Metro Area

Kichijoji Honcho, Musashino-shi, Tokyo

2,160

2,271

4,234.88

100.0%

2,290

5.4%

O-33

Ichigo Meieki Building

Four Major Cities

Meieki, Nakamura-ku, Nagoya City, Aichi

837

782

2,063.52

79.2%

718

5.4%

O-34

Ichigo Sakae Building

Four Major Cities

Sakae, Naka-ku, Nagoya City, Aichi

4,705

4,701

3,928.12

100.0%

5,043

5.3%

O-37

Ichigo Marunouchi Building

Four Major Cities

Marunouchi, Naka-ku, Nagoya City, Aichi

6,710

6,288

8,009.11

98.1%

6,830

5.0%

O-38

Ichigo Toyamaeki-Nishi Building

Other Regional Cities

Jinzuhonmachi, Toyama City, Toyama

1,650

1,564

8,601.71

97.3%

1,700

6.5%

O-39

Ichigo Mirai-Shinkin Building

Other Regional Cities

Niagemachi, Oita City, Oita

1,158

1,140

3,551.46

83.5%

1,220

6.4%

O-40

Ichigo Saga Building

Other Regional Cities

Ekimae Chuo, Saga City, Saga

659

706

2,786.43

86.7%

677

6.7%

3,010

2,699

6,329.33

100.0%

3,100

6.9%

560

558

3,497.88

93.4%

573

7.7%

Value
(mm yen)

(%)

O-42

Ichigo Takamatsu Building

Other Regional Cities

Kotobukicho, Takamatsu City, Kagawa

O-44

Akita Sanno 21 Building

Other Regional Cities

Sanno, Akita City, Akita

O-46

Ichigo Kanda-Nishikicho Building

Central Tokyo

Kandanishikicho, Chiyoda-ku, Tokyo

2,130

2,088

2,523.09

89.7%

2,440

4.4%

O-47

Ichigo Akiharaba North Building

Central Tokyo

Sotokanda, Chiyoda-ku, Tokyo

5,500

5,531

6,250.53

100.0%

6,090

4.9%

O-48

Ichigo Sakaisuji Honmachi Building

Four Major Cities

Honmachi, Chuo-ku, Osaka-shi, Osaka

1,940

1,900

3,729.29

100.0%

2,160

5.0%

O-49

Ichigo Kanda Ogawamachi Building

Central Tokyo

Kanda-Ogawamachi, Chiyoda-ku, Tokyo

2,210

2,207

2,256.09

60.2%

2,280

4.7%

O-50

Ichigo Hatchobori Building

Central Tokyo

Shintomi, Chuo-ku, Tokyo

1,905

1,913

2,697.36

100.0%

2,330

5.0%

O-51

Ebisu Green GlassCentral Tokyo

Ebisu-Minami, Shibuya-ku, Tokyo

5,900

5,907

3,159.27

100.0%

6,080

4.0%

O-52

Ichigo Omori Building

Central Tokyo

Minami-Ooi, Shinagawa-ku, Tokyo

3,850

3,850

3,583.56

100.0%

4,010

4.8%

O-53

Ichigo Takadanobaba Building

Central Tokyo

Takadanobaba, Shinjuku-ku, Tokyo

1,580

1,591

1,606.92

84.5%

1,640

4.6%

O-54

Ichigo Omiya Building

Tokyo Metro Area

Miyacho, Omiya-ku, Saitama City, Saitama

3,430

3,429

6,180.68

99.1%

3,550

5.6%

O-55

Ichigo Sagamihara Building

Tokyo Metro Area

Sagamihara, Chuo-ku, Sagamihara City, Kanagawa

1,174

1,210

2,959.38

100.0%

1,210

5.9%

O-56

Ichigo Ofuna Building

Tokyo Metro Area

Ofuna, Kamakura City, Kanagawa

2,000

2,002

2,364.71

100.0%

2,110

5.7%

O-57

Ichigo Sendai East Building

Other Regional Cities

Miyagino, Miyagino-ku, Sendai City, Miyagi

1,840

1,829

5,213.09

100.0%

1,910

6.2%

O-58

Ichigo Kumamoto Building

Other Regional Cities

Karashimacho, Chuo-ku, Kumamoto City, Kumamoto

1,450

1,447

4,499.08

94.6%

1,460

6.2%

95,89495,085

142,525.38

96.1%

99,185

Subtotal - Office© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

44

Portfolio Details (3)As of April 30, 2015

Use

Other

No.

Propertyp yArea

AcquisitionPrice(mm yen)Address

Book Value(mm yen)

NRA
( 2)
(m

Occupancy(%)

Apr 2015 Appraisal
Value(mm yen)Capp rate(%)

R-04

Bureau Takanawadai

Central Tokyo

Shirokanedai, Minato-ku, Tokyo

1,360

1,305

1,677.88

100.0%

1,060

4.6%

R-06

B-Site Hamamatsucho

Central Tokyo

Hamamatsucho, Minato-ku, Tokyo

701

676

821.84100.0%

588

4.7%

R-09

Ichigo Serviced Apartments Ginza

Central Tokyo

Shintomi, Chuo-ku, Tokyo

946

910

1,020.14

81.1%

832

4.7%

Z-01

Falcon Shinsaibashi Building

Four Major Cities

Higashi-Shinsaibashi, Chuo-ku, Osaka City, Osaka

3,410

2,809

5,760.79

87.3%

2,810

－

Z-02

Fiesta Shibuya

Central Tokyo

Udagawacho, Shibuya-ku, Tokyo

1,970

1,984

1,185.85

90.7%

2,010

4.5%

Z-03

Burg Omori

Tokyo Metro Area

Omorikita, Ota-ku, Tokyo

3,218

3,169

5,345.62

92.8%

2,951

5.9%

Z-04

Pagoda Asakusa

Tokyo Metro Area

Kaminarimon, Taito-ku, Tokyo

1,640

1,604

2,091.26

100.0%

1,740

4.9%

Z-05

Regalo Building

Tokyo Metro Area

Haramachida, Machida City, Tokyo

1,310

1,291

2,183.65

86.5%

1,420

5.3%

Z-06

Ichigo Yokohama-Nishiguchi Building

Tokyo Metro Area

Minami-Saiwai, Nishi-ku, Yokohama City, Kanagawa

903

901

1,264.26

100.0%

942

5.3%

Z 07
Z-07

El Centro Sapporo

Four Major Cities

Minami 2 jo Nishi
Nishi, Chuo
Chuo-ku,
ku Sapporo City
City, Hokkaido

558

560

1 162 52
1,162.52

100 0%
100.0%

538

5 7%
5.7%

Z-08

Daimyo Balcony

Four Major Cities

Daimyo, Chuo-ku, Fukuoka City, Fukuoka

638

607

765.61100.0%

623

5.3%

Z-09

Konami Sports Club Izumi Fuchu

Other Regional Cities

Fuchucho, Izumi-shi, Osaka

1,210

1,177

3,733.68

100.0%

1,340

6.1%

Z-10

Ichigo Shibuya Bunkamura-Dori Building

Central Tokyo

Udagawa-cho, Shibuya-ku, Tokyo

2,400

2,480

778.77100.0%

2,800

3.8%

Z-11

Twicere Yokohama Isogo (Retail Section)

Tokyo Metro AreaMori, Isogo-ku, Yokohama City, Kanagawa

1,620

1,595

2,717.77

100.0%

1,800

5.6%

Z-12
Z
12

Lions Square Kawaguchi

Tokyo Metro Area

Motogo Kawaguchi City
Motogo,City, Saitama

2 430
2,430

2 439
2,439

7 788 097,788.09

100 0%
100.0%

2 530
2,530

5 0%
5.0%

Z-13

Ichigo Shin-Yokohama Arena-Dori Building

Tokyo Metro Area

Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa

1,700

1,700

1,971.34

100.0%

1,760

5.4%

Z-14

Ichigo Kamata Building

Tokyo Metro Area

Nishi-Kamata, Ota-ku, Tokyo

1,400

1,440

2,124.68

100.0%

1,430

5.0%

Subtotal - Other

27,41426,65542,393.75

96.0%

27,174

Total (65 assets)

123,308

121,741

184,943.98

96.0%

126,359(Note) Book value of the Falcon Shinsaibashi Building represents the value reflecting impairment losses , while the appraisal value
represents the sale price (excluding consumption tax and city planning tax) in the contract signed on April 9, 2015.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

45

Asset Acquisitions in October 2015

U
Use

OfficeN
No.

P
Property
t

A
Area

Add
Address

Acquisition
P i
Price
(mm yen)Book Value(mm yen)

NRA
(m 2)

Occupancypy(%)

Apr 2015 Appraisal
Value
V
l
(mm yen)

C
Cap
rate
t
(%)

O-59

Ichigo Jingumae Building

Central Tokyo

Shibuya-ku, Tokyo

7,200

2015/5/7

4,418.17

100.0%

7,220

3.9%

O-60

Ichigo Shibuya Dogenzaka Building

Central Tokyo

Shibuya-ku, Tokyo

3,650

2015/5/7

2,789.86

76.2%

3,720

4.0%

O-61

Ichigo Hiroo Building

Central Tokyo

Shibuya-ku, Tokyo

3,960

2015/5/7

3,510.44

100.0%

4,010

4.4%

O 62
O-62

I hi S
IchigoSasazukak B
Building
ildi

C t lT
Central
Tokyo
k

Shib
Shibuya-ku,
k T
Tokyo
k

4 780
4,780

2015/5/7

6 425 29
6,425.29

100 0%
100.0%

4 840
4,840

4 6%
4.6%

O-63

Ichigo Nihonbashi East Building

Central Tokyo

Chuo-ku, Tokyo

4,700

2015/5/7

4,216.97

84.7%

4,850

4.4%

O-64

Shuwa Dai 2 Sakurabashi Building

Central Tokyo

Chuo-ku, Tokyo

2,500

2015/5/7

2,971.22

100.0%

2,600

4.5%

O-65

Ichigo Shinkawa Building

Central Tokyo

Chuo-ku, Tokyo

2,360

2015/5/7

2,312.03

84.4%

2,480

4.4%

O-66

Ichigo Kudan Building

Central Tokyo

Chiyoda-ku, Tokyo

3,190

2015/5/7

3,090.65

100.0%

3,200

4.5%

O-67

Ichigo Higashi Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,660

2015/5/7

4,548.10

100.0%

3,680

4.6%

O-68

Axior Mita Building

Central Tokyo

Minato-ku, Tokyo

1,800

2015/5/7

2,369.82

100.0%

1,840

4.4%

O-69

Ichigo Higashi Ikebukuro Building

Tokyo Metropolitan Area

Toshima-ku, Tokyo

4,570

2015/5/7

4,553.90

92.5%

4,710

4.6%

O-70

Koriyama Big-i Building (Office Section)

Other Regional Cities

Koriyama City, Fukushima

1,660

2015/5/7

3,432.96

100.0%

1,710

5.5%

Newly Acquired (12 assets) Subtotal

44 03044,03044 639 41
44,639.41

95 5%
95.5%

44 86044,860Total of 76 Assets = Assets owned as of April 30, 2015 (65 assets) - Sold (1 asset) + Acquired (12 assets)

163,928

223,822.60

96.2%

168,409(Note) Leasable area and occupancy are provisionally calculated based on the assets owned as of April 30, 2015, taking the sale of theFalcon Shinsaibashi Building and the 12 assets acquired on May 8, 2015 into account.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

46

85% Office & 83% Tokyo Metropolitan Area Portfolio
As of May 8, 2015

By UseOther
15%

Portfolio Overview
No of Assets
No.

76

Total Acquisition Price 163,928 mm yen
Total Appraisal Value

168,409 mm yen

Leasable Area

223,822 m2

Occupancy

96.2%

SapporoOffice85%

0.6
1%

By Price
Tokyo
Metro
Area
135.3
83%

Kansai
3.2
6%<JPY1B
8%

Sendai
1.9
1%>JPY3B49%

JPY2B～3B
14%

Nagoya12.3
11%

By Age
Other
10.1
6%

Fukuoka

0.6
1%

JPY1B～2B
29%>30 years
22%

By Region
Acquisition Price (bn yen)and % of portfolio(Note) Leasable area and occupancy of newly acquired assets are based on actual as of
May 8, 2015. Those of existing assets are based on actual as of April 30, 2015.
(Note) The 3 serviced apartments are included in Other.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

20 ～30
years
40%

0～10
years
22%

10 ～20years
16%

Average:21.5 years
47Reference: April 2015 Portfolio
As of April 30, 2015

By UsePortfolio Overview
No of Assets
No.

Other
22%

65

Total Acquisition Price 123,308 mm yen
Total Appraisal Value

126,359 mm yen

Leasable Area

184,919 m2

Occupancy

96.0%

Sapporo0.6
1%

Office78%

By Price
Tokyo
Metro
Area
93.0
75%

<JPY1B
10%

Sendai18
1.8
1%>JPY3B
39%
JPY1B～2B
36%

Nagoya12.3
10%

JPY2B～3B
15%

Kansai

6.6
5%

By AgeOthers8.5
6%

Fukuoka

0.6
1%

>30
20%

0～10
24%

20～30
years
37%

10～20
years
19%

By Region
Acquisition Price (bn yen)and % of portfolio(Note) Leasable area and occupancy are based on actual as of April 30, 2015.
(Note) The 3 serviced apartments are included in Other.
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Average:20.8 years
48

Acquisition: Ichigo Jingumae (O-59) / Ichigo Shibuya Dogenzaka (O-60)
Ichigo Jingumae Building (O-59)
Acquisition Price

7,200 mm yen

Appraisal Value

7,220 mm yen

NOI Yield

4 2%
4.2%

Asset Type

OfficeAddress

Jingumae, Shibuya-ku, Tokyo

Leasable Area

4,418.17m2

Structure

RC B1F/6F

Construction Date

Nov 1984

Occupancy

100%

Acquisition Price

3,650 mm yen

Appraisal Value

3 720 mm yen
3,720

NOI Yield

4.3%

Asset Type

OfficeAddress

Maruyamacho, Shibuya-ku, Tokyo

Leasable Area

2,789.86m2

Structure

SRC B2F/9F

Construction Date

Sep 1994

Occupancy

76 2%
76.2%

Ichigo Shibuya Dogenzaka Building (O-60)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

49

Acquisition: Ichigo Hiroo (O-61) / Ichigo Nihonbashi East (O-63)
Ichigo Hiroo Building (O-61)
Acquisition Price

3,960 mm yen

Appraisal Value

4,010 mm yen

NOI Yield

4 7%
4.7%

Asset Type

OfficeAddress

Hiroo, Shibuya-ku, Tokyo

Leasable Area

3,510.44m2

Structure

SRC/RC B1F/10F

Construction Date

Jul 1990

Occupancy

100%

Acquisition Price

4,700 mm yen

Appraisal Value

4,850 mm yen

NOI Yield

4.7%

Asset Type

OfficeAddress

Nihonbashi Bakurocho,Chuo-ku, TokyoL
Leasablebl A
Area

4,216.97m
4
216 9 2

Structure

S/RC B1F/7F

Construction Date

Jan 2010

Occupancy

84.7%

Ichigo Nihonbashi East Building (O-63)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

50

Acquisition: Ichigo Kudan (O-66) / Ichigo Higashi Ikebukuro (O-69)
I hi K
IchigoKudan
d B
Building
ildi (O(O-66)
66)
Acquisition Price

3,190 mm yen

Appraisal Value

3,200 mm yen

NOI Yield

4.9%

Asset Type

OfficeAddress

Kanda Jimbocho, Chiyoda-ku, Tokyo

Leasable Area

3,090.65m2

St t
Structure

S/SRC B2F/8F

Construction Date

May 1989 (Extended in Aug 1990)

Occupancy

100%

Acquisition Price

4,570 mm yen

Appraisal Value

4,710 mm yen

NOI Yield

5.0%

Asset Type

OfficeAddress

Higashi Ikebukuro, Toshima-ku, TokyoL
Leasablebl A
Area

4,553.90m
43 90 2

Structure

SRC B1F/9F

Construction Date

Oct 1980

Occupancy

92.5%

Ichigo Higashi Ikebukuro Building (O-69)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

51

Acquisition: Ichigo Sasazuka (O-62) / Ichigo Sakurabashi (O-64)
I hi S
IchigoSasazukak B
Building
ildi (O(O-62)
62)
Acquisition Price

4,780 mm yen

Appraisal Value

4,840 mm yen

NOI Yield

5.3%

Asset Type

OfficeAddress

Sasazuka, Shibuya-ku, Tokyo

Leasable Area

6,425.29m2

St t
Structure

S/SRC B1F/13F

Construction Date

Mar 1995

Occupancy

100%

Acquisition Price

2,500 mm yen

Appraisal Value

2,600 mm yen

NOI Yield

5.0%

Asset Type

OfficeAddress

Hatchobori, Chuo-ku, Tokyo

Leasable Area

2,971.22m2

Structure

SRC 9F

Construction Date

Aug 1989

O
Occupancy

100%

Shuwa Dai 2 Sakurabashi Building (O-64)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

52

Acquisition: Ichigo Shinkawa (O-65) / Ichigo Higashi Gotanda (O-67)
Ichigo Shinkawa Building (O-65)
Acquisition Price

2,360 mm yen

Appraisal Value

2,480 mm yen

NOI Yield

5 0%
5.0%

Asset Type

OfficeAddress

Shinkawa, Chuo-ku, Tokyo

Leasable Area

2,312.03m2

Structure

SRC B1F/7F

Construction Date

Sep 1990

Occupancy

84.4%

Acquisition Price

3,660 mm yen

Appraisal Value

3,680 mm yen

NOI Yield

5.0%

Asset Type

OfficeAddress

Higashi Gotanda, Shinagawa-ku, TokyoL
Leasablebl A
Area

4,548.10m
4
48 10 2

Structure

SRC/RC B2F/9F

Construction Date

Feb 1990

Occupancy

100%

Ichigo Higashi Gotanda Building (O-67)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

53

Acquisition: Axior Mita (O-68) / Koriyama Big-i (O-70)
A i Mit
Axior
Mita B
Building
ildi (O(O-68)
68)
Acquisition Price

1,800 mm yen

Appraisal Value

1,840 mm yen

NOI Yield

4.6%

Asset Type

OfficeAddress

Mita, Minato-ku, Tokyo

Leasable Area

2,369.82m2

St t
Structure

RC 14F

Construction Date

Oct 2011

Occupancy

100%

Koriyama Big-i Building (Office Section) (O-70)
Acquisition Price

1,660 mm yen

Appraisal Value

1,710 mm yen

NOI Yield

6.6%

Asset Type

OfficeAddress

Ekimae, Koriyama City, Fukushima

Leasable Area

3,433.05m2

Structure

S B1F/27F

Construction Date

Mar 2001

O
Occupancy

100%© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

54

Appendix: About Ichigo REIT

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

55

About Ichigo REIT
Ichigo REIT (8975) is a J-REIT that focuses on mid-size offices, an asset
class that offers both return stability and upside potential to maximize
shareholder value.
 Drives higher earnings and sustainable growth for its shareholders by acquiring insufficiently
maintained mid-size office assets and increasing the value of those assets through a broad array ofvalue-add activities, including tailored tenant services, structural building improvements, andttargetedt d tenanttt leasing.
li Stable dividends for shareholders via a portfolio of mid-size officesthat produce stable cashflows. Upside for shareholders via
the possibility of higher rental income due to office asset class being
economically-sensitive.
 Portfolio growth achieved with a diversified portfolio ofprime location assets located Tokyo, other major regional cities,
and National Strategic Economic Zones.

About Ichigo’s Sponsor Support
Ichigo Group Holdings is a NASDAQ-listed company with cumulative total AUM (assets undermanagement) of 1.4 trillion yen. Its strength is in its Value-Add business which draws upon its handson operating capabilities and extensive experience and know-how in real estate, construction, andfinancing.
 Multi-dimensional support for Ichigo REIT’s Financing, Organic Growth, and External Growthstrategies.
g “Ichigo” comes from the ancient Japanese proverb, Ichigo Ichie, literally meaning “One lifetime, one
encounter.”© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

56

Shareholder Composition
As of April 30
30, 2015

Major Shareholders

Number of Shares by Shareholder Type

Name

Shares #Share %

1

Ichigo Trust Pte. Ltd.

305,760

27%

2

The Master Trust Bank of Japan, Trust Account144,377

13%

3

Trust & Custody Service Bank, Ltd., Securities Investment Trust
Account

127,351

11%

4

Japan Trustee Service Bank, Trust Account94,504

8%

5

NOMURA BANK (LUXEMBOURG) S.A.

77,022

7%

6

Morgan Stanley MUFG Securities

48,260

4%

7

BARCLAYS CAPITAL SECURITIES LIMITED

35,344

3%

8

BNYM SA/NV FOR BNYM CLIENT ACCOUNT MPCS JAPAN25,1182%

9The Nomura Trust and Banking Co., Ltd.

23,442

2%

10

MSIP CLIENT SECURITIES

14,446

1%895,624

79%

Total

Domestic
Individuals &Others117,121

Foreign
Corporations &Individuals
543 520
543,520

Financial
IInstitutions
tit ti
461,865

Domestic
Corporations
7,817

Number of Shareholders by Type© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Domestic
Financial Corporations
132
Institutions
41

Foreign
Corporations &Individuals
124

Domestic
Individuals& Others
11,79057

Ichigo REIT Overview
As of April 30, 2015

Name

Ichigo Real Estate Investment Corporation (Ichigo REIT)

Securities Code8975

Address

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Executive Director

Yoshihiro Takatsuka

Portfolio

65 properties

Portfolio Value

123,308 million yen (based on acquisition price)

Fiscal Periods

November 1 – April 30 and May 1 – October 31

Asset Management Company
Name

Ichigo Real Estate Investment Advisors Co., Ltd.

President & Representative
Statutory Executive Officer

Wataru Orii

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

58

Ichigo Branding (1)Enhancing Recognition by Branding and Adding Value to Ichigo Buildings
and Improving Service Quality
 Updatingpg building
g names to reflect their current status as Ichigo
g REIT p
portfolio assets
 Improving the safety, comfort, and aesthetics of assets via Ichigo’s architectural and engineering
capabilities© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

59

Ichigo Branding (2)Providing High-Quality Tenant Services that Reflect Ichigo’s Hospitality Values
 Ichigo Property Management Standard Ichigo leasing and tenant materials
Ichigo Property Management Standard

Sample Ad and Pamphlet

Leasing Information (from Ichigo homepage)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

60

MEMO

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

61

MEMO

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

62

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, anoffer to sell or a solicitation of an offer to buy any securities of Ichigo Real Estate Investment Corporation (Ichigo REIT). You
should consult with a representative of a securities firm if you intend to invest in any securities of Ichigo REIT.
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management ofI hi REIT with
Ichigoith respectt to
t financial
fi
i l condition
diti andd ffuturetresults
lt off operations.
ti
These
Th
statementst tt are basedbd on certaint i
assumptions founded on currently available information. Accordingly, such statements are subjects to risks, uncertainties andassumptions and there is no assurance as to actual financial conditions or results of operations. Actual results may vary fromthose indicated in the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
y the managementgof Ichigo
g REIT and Ichigo
g Real Estate Investment Advisors Co.,, Ltd.
These materials have been created by(IRE) with the belief that the information contained is accurate. However, there is no assurance given as to the accuracy,
certainty, validity or fairness of any such information.
Please note that the content of these materials is subject to revision or retraction without prior notice.
No copying or reproduction of these materials or part of these materials is allowed without obtaining prior consent from Ichigo
REIT and IRE.

Contact:

Ichigo REIT IR Desk
TEL：03-3502-4891 FAX：03-3502-4894
IR_REIT@ichigo-holdings.co.jp
www.ichigo-reit.co.jp/english
Ichigo Group is Japan’s first zero-carbon listed real estate company. We aretaking responsibility for our environmental footprint by offsetting our carbon
emissions as well as working with organizations to invest in low
low-carbon
carbontechnologies.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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